China's Core CPI Rises as Demand Gathers Pace

AUD

AUD opens relatively flat against the majors, with no major news or data out over the weekend. The ASX 200 fell by -0.3%, as healthcare and financials shed -1.5% and -1.1%. Asian equities finished the day mixed, with the Hang Seng trading -0.9%, Shenzhen -0.2% and the Hang Seng +1.8%. Commodities mixed with Natural Gas down -1.9% and Sugar up 1.5%. Gold was flat, Silver +0.3% and Iron Ore +0.7%. Saturday, we saw China’s CPI y/y and PPI y/y coming in at 0.0% and -3.6%. Despite the flat overall CPI, core inflation, which excludes volatile food and energy prices, rose +0.8% y/y, reflecting growing momentum in domestic demand, especially in the services sector. Today is a quiet day for the AUD. Tomorrow will bring the Reserve Bank of Australia's interest rate decision. The Cash Rate is widely expected to be cut to 3.60% from 3.85%. The following Press Conference usually provides clues for what the RBA foresees regarding future monetary policy. In the days to follow we will see Wage Price Index q/q, Unemployment Rate and Employment Change.
 

USD

AUD/USD opens flat at 0.6520, with markets waiting on Tuesday's US inflation data for the outcomes of Trump's tariffs on the US Economy. A positive end to the week saw the Nasdaq close +1%, the S&P 500 +0.8%, and the Dow Jones +0.5%. The US announced it will impose a tariff on imports of 1kg gold bars, pushing up price of gold to new highs. Over the weekend Fed Board Governor Bowman spoke calling for a rate cut in the September decision and two more to follow before year end. A quiet day for the US on the data front though some major data to be released this week, starting with Core CPI and CPI tomorrow night, the Federal Budget Balance, PPI and Retail Sales later in the week.
 

EUR

AUD/EUR opens flat at 0.5599, little movement for European equities with the DAX closing at -0.1% and the CAC up at 0.4%. No major data out all week for the Eurozone. Today, we will have the Italian Trade Balance and during the week will see German and French Final CPI expected at 0.3% and 0.2%.
 

GBP

AUD/GBP following suit opening flat at 0.4850. On the back of the Bank of England's hawkish interest rate cut last Thursday, we saw the AUD/GBP drop 0.8% before trickling back to a steady level which it has continued on. No data out today for the GBP though will see Unemployment Rate and Average Earnings Index out tomorrow and the big data point of the week on Thursday with GDP m/m.
 

NZD

AUD/NZD opens slightly up at 1.0955. Overall, a quiet week for the NZD with its only bits of data out on Friday. Friday will see BusinessNZ Manufacturing Index and Visitor Arrivals m/m.